Lower premiums come at a cost

Sharing the claim burden with an insurer makes sense in auto insurance

Consider this: You want to buy a health insurance plan with a sum insured of Rs 10 lakh but the premium rates are high. The insurer offers to lower it, provided you are willing to share the burden when a claim arises. This way, you get a higher cover that can take care of rising medical costs, and the insurer’s outgo is also lower in case a claim arises.
 
While such arrangements have existed in auto insurance for some time, many companies in the health segment have also started offering them. “The average claim size in auto insurance is